ASM International, a global leader in semiconductor manufacturing equipment, has announced an ambitious revenue target for the year 2025, aiming to reach between €3.0 billion and €3.6 billion. This target represents a significant increase from the previous 2021 Investor Day target of €2.8 billion to €3.4 billion.
Furthermore, ASM International envisions an even more impressive growth trajectory, with a target revenue range of €4.0 billion to €5.0 billion by 2027, demonstrating a compelling compound annual growth rate (CAGR) of 11 percent to 16 percent for the period 2022-2027.
ASM International also reiterates its commitment to maintaining a strong financial position with gross margins projected to be between 46 percent and 50 percent, and operating margins in the range of 26 percent to 31 percent for the years 2023 to 2025.
These impressive financial projections are also targeted for the subsequent years, with an upward trend in operating margins anticipated in the following years. ASM International plans to invest an annual capital expenditure (Capex) of €100 million to €180 million from 2024 to 2027 to support this rapid growth.
In addition to financial targets, ASM International anticipates substantial growth in the semiconductor equipment market. The single-wafer Atomic Layer Deposition (ALD) market is forecasted to reach a range of $3.1 billion to $3.7 billion by 2025, up from the 2022 market size of US$2.6 billion.
Furthermore, ASM International envisions continued growth in this segment, projecting the ALD market to expand to $4.2 billion to $5.0 billion by 2027, aiming to maintain a market share exceeding 55 percent.
Similarly, the Silicon Epitaxy (Si Epi) market is expected to experience substantial growth, with a forecasted range of $1.9 billion to $2.3 billion by 2025, compared to the 2022 market size of US$2.0 billion. The company aims for further growth in this segment, projecting the Si Epi market to reach $2.3 billion to $2.9 billion by 2027, with a target market share exceeding 30 percent by 2025.
Benjamin Loh, President and CEO of ASM International, expressed confidence in the company’s strategic growth initiatives, stating, “Our Growth through Innovation strategy is clearly bearing fruit, as demonstrated by our performance in 2020-2022, and remains a strong foundation for continued value creation in the coming years.”
Furthermore, Loh pointed out ASM’s strengths in supporting next-generation semiconductor devices, particularly in complex 3D architectures and new materials. He highlighted the company’s readiness to assist its leading logic/foundry customers in the transition to gate-all-around (GAA) technology, which is expected to significantly expand ASM’s served available market (SAM).
Lastly, ASM International confirmed its Q3 2023 guidance, projecting sales in the range of €580 million to €620 million, and orders exceeding the Q2 2023 level but still below the Q1 2023 level. Despite economic conditions and market softening, the company remains optimistic about achieving its set targets, reinforcing its position as a dominant force in the semiconductor equipment industry.
